Large scale interest in institutional investments in affordable housing

Joint media release with the Hon Christian Porter MP Minister for Social Services

Following the establishment of the Affordable Housing Working Group in January 2016, the Commonwealth Government has received 77 submissions from a wide range of stakeholders on ways to boost the supply of affordable rental housing through innovative financing models.

The Minister for Social Services, Christian Porter, said the Government is particularly encouraged by the strong positive response from institutional investors.

“The working group has received submissions from a number of superannuation funds and other institutional investors, including major banks,” Mr Porter said.

“This clearly shows that there is strong financial sector appetite for investment in affordable rental housing.

“Attracting large scale institutional investment to affordable housing, particularly from Australia’s $2 trillion superannuation sector, will require close collaboration between investors, housing providers and state and Commonwealth governments.”

Assistant Minister to the Treasurer, Alex Hawke, said the working group is now assessing the submissions to identify barriers to large scale private investment in social and affordable rental housing, and to identify complementary reforms to better encourage and facilitate investment.

“Facilitating large scale private investment in social and affordable rental housing is key to addressing Australia’s affordable housing shortfall,” said Mr Hawke.

“The combined commitment of the states, the Commonwealth and industry towards better outcomes in affordable housing provides a unique opportunity to substantially improve the quantity, quality and appropriateness of housing available to the most vulnerable Australians.”

The public submissions provided to the working group, along with the working group’s Terms of Reference and Issues Paper are available on the Treasury website.